Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-05-21

s0etou, oOOQI one hmm.
dreo OF those interested assembled in III. h.u
last evening. ~ 10"
hon. Herbert N. Heath was made ch.;,.
nan and +. E. Southland, Esq +, secretary.
Inc Chairman introduced Prof W w
otet'on of Auburn who is connected with
several associations aud be proceeded to civ.
avery clear and practical explanation Of lo.,
ana building associations, their working, and
successes
Inc manner in which they operate va.
stated in substance As follows:
ANY person may purchase shares not ex
ceeoing twenty five in all. The price i, 10
De one dollar per month for each share Tho
payments Tor the investor or non borrow 9,
continue until worth 5000. They are then
caleo matufed shares, or. As it is said, have
reached their ultimate value. Before the H.
sue Vi new series the accounts are made I'D
and profits credited to the several share,
At maturity each shareholder is entitled ~
receive 5000 in cash for each of the ma,ured
shares held by him. 1t is plain that IL mo
pronts we're added it would require tao hun
ared months or l63 years to pay for share:
OUT the profits generally reduce the time To
zen years and this makes good investment.
Depositors may Withdraw thtir money az any
tune on giving thirty days notice. Two
snares are exempt from attachment. Upon
the death OF shareholder the shares are paid
over with profits to his legal representatives.
and distributed in the same manner as life
insurance. Minors may take shares by trus.
tees. In case shareholder neglects to Law
MS one dollar q month he is to be subjected
10 noe OF two cents per share per month.
Inc Borrower-Any shareholder may Dor
row two hundred dollars upon each of his
shares II he can fnrnish the security required
oy law. Security may be by first mortgage
upon real estate or upon the .hares them
selves. Ii one borrOws upon a mortgage he
transfers the shares to the corporation 40 ad-
ditional or collateral security. One is Der.
United to borrow upon his shares provided
that the sum desired 10 not more than is per-
mitted by the bylaws. The process for Dor
rowingis this: The borrower attends .
monthly meeting at which the money on
hand is offered for sale and bids are invited.
He bids premium, which he, BY 80 doing,
offers to pay monthly for the privilege OF
borrowing the money. The premium 10 q
bonus and goes to the general fund and the
borrower receives back his proportional part
| of it. The bids are to be in Gums devisable
by Ave, j. e., must he S.. go, 8l5, and so
are IN addition to the interest charged for the
use Of the money.
Having become q successful bidder, the
borrower assigns his shares to the association
a. collateral and gives mortgage of real
estate to secure the loan. To illustrate: A.
wishes to borrow $1,000. This requires Ave
shares. II the money is sold at a premium
of 20 cents per share. A then pays the fol-
lowing: 15 for monthly dues (this he is to
pay whether he borrows or not) IS for
monthly interest at 6 per cent. and 81 % for
monthly premiums (being rs cents per share
on Ave shsres) the total monthly payment
being 81 70 on $1,000 loan, the premium
being rs cents per share per month. This
payment is continued without diminution I'M
til the shares mature (being on an average
about ten yaars) when 1t Is plain they of set
the mortgage, being worth $1,000 in cash. At
that time the payments cease, the mortgage
is discharged by the corporation and the
shares cancelled. In this illustration: A
pays gil 20 per month, or $3.50 in ten years,
thus Laying $3.50 interest or only 81 per cent.
for the use of MS money, to say nothing OF
the great advantage derived from being al,
lowed to pay monthly iustalments, which is
leading feature of the association.
"Loans may also be paid up at any time in
whole or in part. Persons not owning land
or building-lots may avail themselves of
loan after their deposit has stood long
enough to be equal to the cost of the lot they
may buy with the fund thus accumulated
Such have been the experience and results of
the Peoples Loan and Building Association
at Richmond. Sales of money are made
once month at the monthly meetings. Loans
are made on first mortgage of real estBte and
upon shares to the amount of their accumu-
lated value"
1t 10 we'll known that Philadelphia has
been largely built up by these societies.
The associations are perfectly safe and re-
liable. In fact there can be nothing safer 40
they founded on real estate securities. There
WAS never one known to 20 into bankruptcy.
Ii 10 not q charitable association, not lot
terry. These Institutions have been founded
BY our most level headed men.
The borrower must give real estate secuI;-
ty, which shall be first mortgsg". IL the
borrower 10 no longer able to pay his regular
instsllments and insists on turning over his
property to the association then it is sold BY
the officers at the highest price obtainable
and the balance, after liqaidatine what 10
owed the institution, goes to the borrower
By this system it will be seen there 10 no
gobbling up of property of poor or unfortn-
nate men.
In the Auburn association Of which the
spesker was . member, two men worth over
9 zoo, 900 each were members and twenty,
SIOO, OOC. There were numerous mechanics
and workingmen, seventy nine children,
twenty.seven women and several professional
men. In little less than three days Sl20,
600 were subscribed to the Auburn associs-
ton. which recently started. The sum OF
$4,000 is the Limit allowed by law.
The cost of running is from one-half to
two thirds per cent. year on the money put
in.
Prof. Stetson was much Intercepted and
his answers are mostly embraced in the
above. The first steps to be taken in organ
ling we're for thirteen or more persons to
sirn under oath certificate of intention to
he forwarded to the bank examiner with fee
of As and that official would return certlfi.
cate of organization. Then if it is found
that a sufficient number of persons Will not
.ustsiu the movement it can be given up.
Twas not thought advisable to ascertain
how much stock would be taken at the meet
iuy. The chairman, however, requested all
those who would sign the certificate OF IN
tept;on TO rise and nineteen responded.
On motion of Col. Staples, Chairman
Heath. judge Andrews and 7. J. Lynch were
appointed . c ommlttee to draw up certificate
of application to be presented at the next